Disclosed herein is a palatable, nutritious, rice based, 95% fat-free and 100% lactose free frozen dairy product composition, "RYZ-Cream", with desired texture and mouth-feel, which can benefit the general population of all age groups to eliminate the incidences of lactose intolerance and Hypercholesterolemia. The present invention also disclosed a cost effective process for preparation of said RYZ-Cream composition.